New zealand property sales see summer slide

REINZ data shows there were 6,135 unconditional residential sales in June, equal to the number of sales in June 2012, and a fall of 20.5% compared to May 2013 - although on a seasonally adjusted basis the volume of residential sales was up 0.6% compared to May, and up 6.1% compared to June 2012.

Six regions recorded increases in sales volume compared to June last year, with Taranaki recording an increase of 18.4%, followed by Central Otago Lakes with 15.8% and Waikato/Bay Of Plenty with 3.8%. All regions recorded a decrease in sales volume in June compared to May, though, with Hawkes Bay recording a decrease of 32.2%, followed by Southland with a decrease of 29.8% and Manawatu/Wanganui with a decrease of 27.6%.

Despite the monthly drop in sales, though, the national median house price actually increased by $2,000, from $392,000 in May to $394,000 in June. That’s a jump of 5.9 per cent compared to June 2012, with seven of the 12 regions recording a year-on-year increase in the median price.

The national median price remains just $6,000 below the record median set in March 2013.

Real Estate Institute of New Zealand (REINZ) Director Bryan Thomson says price levels in Auckland and Canterbury are having an increasingly significant impact on the national picture. Canterbury recorded the largest increase in median price compared with June last year, and Auckland the second largest increase in median price. Together both regions accounted for 99.6% of the $22,000 increase in the national median between June 2013 and June 2012. Price gains in most other regions have been minimal, with the median price for the rest of New Zealand $2,300 lower than November 2007.

"The continuing strength of house prices in Auckland and Canterbury is being driven by the rising imbalance between supply and demand, with the number of properties coming to market from new builds and existing owners falling well short of the demand for housing. The number of houses available for sale is an issue for most regions in New Zealand; however, the problem is most acute in Auckland and Canterbury.”

“There appears to a Change in market behaviour with rising prices and demand for housing in Auckland and Canterbury not being enough to increase the number of listings. While the growth rate in sales in Auckland has averaged around 20% for the past two years, the growth in the number of listings has been almost negligible. Normally we would expect the number of listings to increase more rapidly coming out of a downturn, but as yet, this does not appear to be happening.”